Supply Chain Management Supply Chain Management Sustainability 2 — Questions and Answers
Question 1: What does 'scope 3 emissions' refer to in supply chain sustainability reporting?
- Emissions from a company's own facilities and vehicles
- Emissions from purchased electricity
- Indirect emissions occurring in a company's value chain, including suppliers and customers (Correct answer)
- Emissions regulated by the EPA under Scope 3 rules
Correct answer: Indirect emissions occurring in a company's value chain, including suppliers and customers
Scope 3 emissions cover all indirect emissions in a company's value chain that are not owned or controlled by the company, often the largest share of its total carbon footprint.
Question 2: Which practice involves sourcing raw materials and products from local or regional suppliers to reduce transportation emissions?
- Nearshoring
- Reshoring
- Local sourcing (Correct answer)
- Offshoring
Correct answer: Local sourcing
Local sourcing reduces the distance goods travel, lowering fuel consumption and emissions while often also supporting regional economies.
Question 3: What is a 'supplier code of conduct' primarily designed to do?
- Set pricing agreements with suppliers
- Establish minimum environmental and ethical standards suppliers must meet (Correct answer)
- Define delivery lead times for suppliers
- Outline payment terms and penalties
Correct answer: Establish minimum environmental and ethical standards suppliers must meet
A supplier code of conduct communicates a company's expectations regarding labor rights, environmental practices, health and safety, and ethics that all suppliers must follow.
Question 4: Which term describes the strategy of reducing packaging materials to minimize waste and lower shipping weight?
- Package consolidation
- Right-sizing (Correct answer)
- Containerization
- Value-added packaging
Correct answer: Right-sizing
Right-sizing packaging means using the smallest effective package for a product, which reduces material waste, dimensional weight shipping costs, and environmental impact.
Question 5: What is a 'life cycle assessment' (LCA) used for in supply chain management?
- Evaluating the career progression of supply chain employees
- Measuring the total environmental impacts of a product from raw material extraction to disposal (Correct answer)
- Assessing the financial lifecycle of supplier contracts
- Tracking product warranties from sale to expiration
Correct answer: Measuring the total environmental impacts of a product from raw material extraction to disposal
An LCA systematically analyzes all environmental inputs and outputs across a product's entire life—from raw material extraction, manufacturing, and use to end-of-life treatment.
Question 6: Which US program certifies sustainable forestry practices in timber and paper supply chains?
- LEED Certification
- Forest Stewardship Council (FSC) (Correct answer)
- ISO 14001
- EPA Energy Star
Correct answer: Forest Stewardship Council (FSC)
The Forest Stewardship Council (FSC) certifies that forest products come from responsibly managed forests that provide environmental, social, and economic benefits.
Supply Chain Management Supply Chain Management Sustainability 2
What does 'scope 3 emissions' refer to in supply chain sustainability reporting?